Restaurants in Bengaluru and Chennai may temporarily shut operations as hotel associations warn of a severe shortage of commercial liquefied petroleum gas (LPG) cylinders. Industry groups said the disruption could affect thousands of eateries if supplies are not restored quickly.
The shortage comes shortly after the nationwide increase in prices for both domestic and commercial LPG cylinders.
Hotel Associations Warn of Possible Shutdown
According to the Bangalore Hotels Association and the Chennai Hotels Association, commercial LPG distributors have reportedly halted cylinder deliveries due to lack of stock.
Industry representatives warned that many restaurants may be forced to stop operations if supplies remain unavailable.
The associations said the disruption could significantly affect daily consumers such as students, office workers, and healthcare professionals who rely on restaurants and small eateries for meals.
Restaurants Seek Government Intervention
The Chennai hotels body has called for intervention from Prime Minister Narendra Modi, urging the government to address the supply disruption.
In a statement posted on X, the association said commercial LPG distributors had stopped supplying cylinders entirely due to stock shortages, forcing many restaurants to consider temporary closures.
They also warned that existing banquet bookings, catering services for IT parks, and food supply to college hostels could be affected.
Restaurant Industry Raises Alarm
The National Restaurant Association of India (NRAI) also raised concerns over the issue, stating that the hospitality sector heavily depends on commercial LPG for daily operations.
According to the industry body, any prolonged disruption in supply could lead to widespread closures across the restaurant sector.
Impact Spreads to Other Cities
Reports suggest that restaurants in Gurugram and Mumbai are also experiencing difficulties in procuring commercial LPG cylinders.
Some eateries in Mumbai areas such as Dadar, Andheri, and Matunga have already begun adjusting their menus by removing slow-cooking dishes and shortening operating hours to conserve fuel.
Restaurant managers say many businesses currently have only a few days of backup cylinders remaining.
Global Oil Prices Add to Supply Concerns
The LPG shortage comes amid rising global oil prices linked to the ongoing tensions involving Iran and the United States in the Middle East.
Energy markets have been particularly sensitive due to risks surrounding the Strait of Hormuz, a crucial shipping route through which nearly 20% of the world’s oil supply passes.
Government Responds to Supply Disruptions
Responding to the situation, the Ministry of Petroleum and Natural Gas said it has instructed oil refineries to increase LPG production and prioritise domestic supply.
The ministry also announced a 25-day inter-booking period for domestic cylinders to prevent hoarding and black marketing.
Additionally, a committee has been formed to review requests from the restaurant industry regarding commercial LPG supply.
Meanwhile, the Pune Municipal Corporation has temporarily closed the city’s gas crematoriums to prioritise propane and butane supplies for household LPG distribution.
Recent LPG Price Hike
The supply concerns follow a recent price increase in LPG cylinders across India. Commercial LPG cylinder prices were raised by ₹115, while domestic cylinder prices increased by ₹60 last week.
Industry leaders say the combination of rising prices and supply disruptions is placing significant pressure on the hospitality sector.
